Virtual Currency Poses Potential Financial Risks: Gandhi

Business

dion-Religare

Posted By: Religare

Updated: Thursday, March 2, 2017, 13:45 [IST]

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According to media reports, Reserve Bank of India Deputy Governor R Gandhi has raised concerns over virtual currencies such as Bitcoin and said they pose potential financial, legal, customer protection and security-related risks.

Virtual Currency Poses Potential Financial Risks: Gandhi

The RBI Deputy Governor further said that such digital currencies are not created by any authority but more and more people have started accepting them.

Commenting on the issue, Reserve Bank of India Deputy Governor R Gandhi told the media, "We can see that in these types of virtual currencies there is no central bank or monetary authority. They pose potential financial, operational, legal, customer protection and security-related risks."

"Virtual currencies are stored in digital electronic form and are prone to losses arising out of hacking, loss of password, and malware attacks. No established framework for recourse to customer problem, disputes and grievances is feasible with this (virtual currencies) kind of framework," he added.

The Deputy Governor said a number of cases had been reported in which virtual currencies had been used for illicit and illegal activities.

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